You are the manager of Autoquest Industries. Singing Bobbleheads that are placed on a car's dashboard is one of the products that your firm manufactures and sells to car dealers. Currently Autoquest is charging $10.00 per Bobblehead and selling 1,000 per month. Billy Bob, the owner of the firm, "C'mon, let's change the price to rake in a huge amount of dough." As a first step you, the manager, estimate that the price elasticity of demand for the Singing Bobbleheads is 4.0 over the relevant price range.

a.The demand for Singing Bobbleheads is (circle one):elastic / inelastic / unit elastic

Must show calculations for 3b & c and 4a & b

b.A 10% decrease in the price of Singing Bobbleheads woul________ the quantity of Singing Bobbleheads demanded by __________%

For the 3b calculation use: E_D=% Q

% P

c.Total Revenue=PriceQuantity

A 10% decrease in the price of Singing Bobbleheads would

____________________ total revenue from $10,000 to $____________ per month

PQTR

$101,000$10,000

$________________$________